Cal-Maine Foods Inc (CALM)
Solvency ratios
| Jun 1, 2024 | Jun 3, 2023 | May 28, 2022 | May 29, 2021 | May 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.21 | 1.21 | 1.29 | 1.21 | 1.20 |
Cal-Maine Foods Inc has consistently maintained a very low level of debt relative to its assets, capital, and equity over the past five years, as indicated by the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all being 0.00 for each year. This suggests that the company operates with minimal financial leverage and relies more on equity financing than debt to fund its operations.
The financial leverage ratio, which reflects the proportion of a company's assets that are financed by debt, has fluctuated slightly over the years, ranging from 1.20 to 1.29. In general, the financial leverage ratio has been relatively stable around 1.21, indicating that Cal-Maine Foods has maintained a conservative level of leverage in its capital structure.
Overall, the solvency ratios suggest that Cal-Maine Foods has a strong financial position with low reliance on debt, which may indicate a lower risk of financial distress and greater financial stability.
Coverage ratios
| Jun 1, 2024 | Jun 3, 2023 | May 28, 2022 | May 29, 2021 | May 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 659.61 | 1,715.99 | 413.47 | -45.71 | 41.41 |
The interest coverage ratio for Cal-Maine Foods Inc has fluctuated over the past five years. In June 2024 and June 2023, the interest coverage ratios were significantly high at 659.61 and 1,715.99 respectively, indicating that the company's earnings before interest and taxes (EBIT) were more than sufficient to cover its interest expenses. This suggests a strong ability to meet its interest obligations.
In May 2022, the interest coverage ratio decreased to 413.47, still indicating a healthy ability to cover interest payments but slightly lower than the previous years. However, in May 2021, the interest coverage ratio turned negative to -45.71, signifying that the company's EBIT was not enough to cover its interest expenses. This could be a cause for concern as it indicates financial distress.
By May 2020, the interest coverage ratio improved to 41.41, but it remained relatively low compared to the earlier years. Overall, it is important for stakeholders to monitor Cal-Maine Foods Inc's interest coverage ratio closely to ensure the company can meet its interest obligations and remain financially stable.